Revenue eBrief No. 126/19
27 June 2019
Capital Gains Tax anti-avoidance measures - Finance Act 2017
Tax and Duty Manuals Part 02-03-01, Part 20-01-14 and Part 42-03-01 have been updated to reflect anti-avoidance measures relating to capital gains tax introduced in Finance Act 2015.
These measures were extended in Finance Act 2017 to prevent arrangements that might be put in place prior to the disposal of shares whereby money or other assets are transferred to a company to ensure that, at the time of disposal of the shares, their value would be derived from those assets rather than land, buildings, etc. situated in Ireland. Such arrangements would:
- avoid a CGT charge on disposals of shares by non-resident persons and avoid the need to apply for a CGT clearance certificate, and
- enable an exemption from corporation tax on chargeable gains under section 626B TCA 1997 to be obtained in the case of a disposals by holding companies of shares in their subsidiaries.